Dive Brief:
- American Apparel has ended the months-long drama with founder and ex-CEO Dov Charney by completing Charney's termination and naming Paula Schneider as its next chief executive.
- Paula Schneider has held the top position at brands such as BCBG Max Azira, Gores Group, and Warnaco, and will take over as CEO Jan. 5.
- Schneider replaces interim CEO Scott Brubaker, who replaced Dov Charney in June after he was removed from the top spot for misconduct.
Dive Insight:
Charney's removal was pending an investigation by FTI Consulting looking into allegations of misconduct and mismanagement of the company's funds by the American Apparel founder. With the investigation closed and Charney officially out the door, American Apparel can now focus on other pressing matters, including heavy losses in its last quarter.
The good news is that the American Apparel's new CEO—the first female executive in the company's history—comes with a plethora of retail experience. According to a press release from the company, Schneider has "a well-earned reputation for improving the financial performance and operational efficiencies of numerous global fashion brands."
